The war on terror has become an unintended trade barrier.

                 I remember the days when all you needed to go to Canada was a driver’s license and a smile, but 9/11 changed all that. Since September 2011 the war on terror has drastically altered the trade system in the United States. Before 9/11 U.S Customs and Border Patrol was more of an enforcement agency, but because of the war on terror the agency has become part of homeland security and is considered one of the first lines of defense in the country.

                       Trade barriers come in many forms like tariffs, quotas and embargo. A trade barrier can be defined as restrictions on movement of goods between countries. For each action there is a reaction; the war on terror is America’s reaction to 9/11. Directly or indirectly 9/11 has changed the lives of more than half of the planet’s population.

                       The benefits of trading are many, and trade barriers are a detriment to investing and production efficiency.  The consequences of the war on terror as a trade barrier are invisible and unintended and will be felt for years to come. The emotional impact, the decision making impact and the security impact that the war on terror has on trade is incalculable. This invisible barrier has put the United States at a comparative disadvantage in the world market because it adds to the cost of doing business in all areas, from the production of goods, to the flow of goods between countries to the consumption process. Consumers are losing because of these unintended trade barriers; as investing has become more expensive because companies seek to protect their workers and their bottom lines. Today the war on terror is one of the greatest obstacles to trade, and it is tougher to resolve because it is unintended and we are not addressing it properly. It is not out of pure coincidence that most industrialized nations have been in some form of recession in the last five years. Our very life fabric is changing in front of us and we are watching it happening powerlessly. I follow the news somewhat closely and to my knowledge our elected officials address the situation or offer possible solutions. Perhaps the bigger question we should be asking ourselves is how the war has on terror has changed trade among countries and what is the real nominal impact of 9/11 on trade?

Reference

Carbaugh, Robert J. Global Economics. Mason, OH: South-Western, 2010. Print.